Iraq is bracing for a budget crunch in 2025 due to declining oil prices, which account for approximately 90% of its government revenue, according to Mudher Saleh, an economic adviser to Prime Minister Mohammed Shia al-Sudani. Although 2024 is projected to remain stable, with a budget increase to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion), concerns are growing about future fiscal discipline as the country relies on an assumed oil price of $70 per barrel. Salaries and pensions, making up over 40% of the budget, are highlighted as a priority, with Saleh emphasizing their critical role in maintaining social stability. To counter potential financial strain, Iraq plans to focus on enhancing non-oil revenues and improving tax collection, with an estimated annual loss of $10 billion due to tax evasion. Public spending may need to pivot towards only the most strategic infrastructure projects if economic conditions worsen. The situation underscores Iraq's vulnerability to global oil market fluctuations, particularly as demand weakens.